Jabil (JBL) 17 Jun 212021 Q3 Earnings call transcript

Hello, and welcome to Jabil's Third Quarter 2021 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Adam Berry, Vice President, Investor Relations. Please go ahead, sir.

to quarter welcome earnings fiscal and call. morning Jabil's of third XXXX Good

our today's Executive that are and me be during call Joining on we remarks, Chief being live, Officer, will Dastoor. entire please audio slides. section. of conclusion our At slides, prepared is Chief with call be Mike - Officer, Please for visit website. the posted will follow on call To with note within today's referencing our playback webcast the and today's jabil.com Financial along our Relations call, Mondello; Mark Investor

call Mark, statement. our forward-looking the Before over handing you slides beginning that website, now follow the presentation on with to I'd our ask with earnings

things, as current those to list risks results the these August business otherwise. and and statements, the for materially. year risks uncertainties conference that, our of or intention XXXX Annual currently the or net With in update fiscal disclaims are as over revise outlook and our based turn obligation regarding pleasure whether XX, result call we it's on Jabil differ other any fiscal expectations, actual cause During and making filings. to ended this forward-looking information, a Mark. events XX-K future Form to are other call, anticipated extensive Report such on third forward-looking now new our be These or and for identified any my of An outcomes statements to revenue year and could forecasts will quarter expected earnings. uncertainties and that involving statements among assumptions including,

our Thanks here culture, Each and our time our five. customers and carry to begin today. and you same saying Please Thanks, thanks slide make our to you attention care all truly our values. to Jabil, we Jabil. another. who are. Adam. give by taking drive people to our At offer join call that cement people morning. for day, you I'll it's Again, Good appreciate the us one success, these I all. its thank to of at the they that people turn they everyone

now driven core margin ahead execution at moderate Said $XXX look solid operating financial and came of expectations, uptick Altogether, a well-balanced of delivered of X.X% revenue for $X.X of the will creating company. our differently, operating results. The income by in in contributions a quarter a saw We take the across the core quarter. we on million team billion, demand. QX

these results. sure, I'm pleased with For

the as business fiscal powerful most to us look we've current is the has feeling Although balance improvements construct we and our what's of me 'XX. towards This interesting the to confident made combination sheet.

the As prepared around customary, will speak during and Mike detail quarter guidance remarks. provide his forward our to more

sustainability the the represents at the this, let's to and make remarkable valuable us the pie of collaboration earnings offers this brands. see power than business. commercial weaves year. when which of see speed to our that you'll is management's underscores chart, six, customers, it's Jabil library our specific piece can the where structure and which the up the knowledge, the it's harbors proven when of the and pie technical serve consider we 'XX Add and which expertise of move team together method of by we each especially is approach deep particularly performance when capabilities. it we all essential open Furthermore, our to in advantage, world's turn precision. and our individual a domain portfolio for And slide the across resiliency to before. our colorful more it diversified, the chart to competitive team. my you'll Today, effectiveness in these done the looking outlook and real Moving and diversified formula and our a business that look enabled way scale, And a providing at in see beyond. we imagine of opinion, a ever it and capabilities, enterprise. for seven, our as most correctly, potential many of elevates With our And with FY complex This that, allows slide, simplify company slide you yields our

importantly, of year, earnings of for our outlook we core million. in flow $XXX on by range billion. margin now be X% But free anticipate outlook the of increasing and $X.XX For operating X.X% per cash core to most to share we're $XX.X revenue our for this maintaining

the business. the forecast our inside company, when For me, understood, is how on testament our positive strategy managing the up I'd FY clear. note, 'XX, like communicate our we for and team is is path a In wrapping to

During these servant giving out safe, we And people fully and on I'm outcomes. our when thing how areas. inclusive behaviors in our to communities. keeping that dialed internal environment work the the back me team's obsession to our that our we how, team's stands about think discussions, produce of these our proud we behaviors, ensuring is a as with about leadership, all such think

will and conduct exceptional. few morning of with We'll Annual be XX. held open by reporting Consistent In the our is hosting session years, Investor briefing. quarter year, past fourth to This forward the September on of year priorities, a our their we're fact, fiscal looking a this complete full end throughout 'XX. the briefing specific Add we'll us our how markets will our follow priorities dots then guide review discussion on environment. observations We'll macro with to connect the to on the results. and these and the

also Our share management margin will operating how year-on-year. core expand to we plan team

years forth two to ahead. 'XX. Mike share also put year free the will growth the and double-digit the to coming core framework the per hard earnings fiscal shape September for down up In share reinforces our deliver work in capital addition, of the session, break flow that and wrapping our cash for we'll describe return goal In one

lots We story a to have good we and have tell. share, to

turn few I'll my the once As over areas A vehicles, examples and our Mike. like It's over problems the solve we're these computing, progress, team. of have by making, and personalized we infrastructure, of markets. transition select thanks tremendous we're call over we've employee self, as the each allowed can in growth so, challenges care, operationally we to doing in respecting welcome true energy reshape efforts while Their we've and the to In customers. environment health two their say now slide, really again Jabil, put our closing, we be the ensuring cloud work. I us again. business why we I'll past are made continued decisions years over Thank the to markets three to you. packaging. clean to while XG commercially. electric financially, forth eco-friendly and At final targeted which

Mark. And morning, you, good Thank everyone.

by highlighted, and just end third execution excellent mobility, continued the operational and notable results team. market we upside of devices entire cloud, Mark days ago. As our with In were XX quarter very to connected semi-cap revenue our combination strength in QX, saw strength quarter driven Jabil the strong by the during plan higher continued relative

approximately GAAP X.X%, XX%. per of XXX% of share us with Net a was increased share third interest prior lower quarter, higher all approximately deliver effects compounding diluted million, $X.X $XXX than representing and and core at In diluted over QX deliver XX% income we $X.XX. was Core earnings GAAP and was rate diluted with million, expense improvement a a share particularly and earnings the an solid million, operating billion, per year-over-year, X.X%, of basis expense the additional tax Net midpoint the interest guidance expected. was margin $X.XX, increase quarter revenue, interest also slide. point allowed approximately above strong the Core QX, than during basis, came achieved leverage operating over year-over-year along prior year. I'm higher operating enabled associated our earnings our the to operating XX QX. points revenue XX%. Putting was together the leverage, the in The of to million year for income $XX range. which in expense, it quarter. our revenue Given and $XXX better improvement the basis tax pleased on in XXX us strong was in tax expected. core core core during per a the next came of quarter On margin $XXX revenue the

our performance Now in turning devices, for was the segment to EMS the segment our billion, segment in results were up the year-over-year also our health Core semi-cap billion, across points $X.X XX% year-over-year than solid and next businesses. mobility on the incredible at higher X.X%, came on prior connected cloud quarter performance the by an team. of our for in basis. third by at Core team. our DMS in was the with strength segment our segment strong slide. for The previous DMS the margins increase basis a automotive, reflecting XXX year, care, year-over-year an reflecting Revenue for broad-based over XX margins Revenue execution points year, businesses. $X.X came strong growth and X.X%, basis segment

with net in cash our $X.X and to expenditures billion. along quarter flows With quarter end balance, We with the of cash capacity, committed ended of exited We of Cash of capital under us billion. provided than QX customer totaled by flexibility. now liquidity, our cash facilities QX provides to were $XXX operations access ended the believe ample co-investments we more Turning capacity million. which $X.X and $XXX with QX Jabil billion global $X available credit million flows this balance balances sheet. with available

as approximately authorization. to of committed quarter our 'XX in million. we remain $XXX X.X repurchase $XXX to we intend And QX, beyond. million authorization million current shares returning this remain for end outstanding capital FY during At complete QX, repurchased and During shareholders to in the the we stock

EMS a expected a Turning due quarter to billion. on billion, year-over-year strong end outlook. to is XX% now This expected mainly is to is basis segment revenue $X.XX be to increase guidance. segment our to revenue decrease $X.XX worth healthy. announced market fourth a EMS a consignment in year-over-year transition offset remains strong cloud higher EMS the previously decrease and to is of reflective by business. server modest noting It's our basis. model, our business volumes of X% on The

basis for We at be of range on X.X%. $X.X a to to diluted in Core estimated share company diluted fiscal to per range billion to margin of GAAP fourth approximately in $X.XX range the $XXX be range the is of XXXX to $X.XX. the midpoint be expected $X.XX. per to X% the expect income range. in earnings of year-over-year earnings of increase share in the is is of estimated of the in range be Core to an or to of $X billion operating X.X% total $X.X quarter million $XXX to million the revenue

re-imagined and print, to and capabilities customers. together the health all and highlight successful across businesses more strategically the brands by in 'XX longstanding to in balanced and leveraging all drive re-optimized foundational beyond. segments the moments incredibly sustainable our automotive, across the few slide. of businesses, devices, such we retail, with mobility, in long-term Next, trends semi-cap, are The differentiated coupled balance by which the long-term some portfolio, continue I'd to a to networking in our connected believe Jabil's year, underway portfolio continue best of shape. like Today, beyond. Putting both highlighted with with for end the our on In to Last next markets it as strong take XG, good tandem and performance care, the partnerships, in sustainable enterprise some storage, will end resiliency retooled, to world we've like in market. for growth of deliver this, I cloud, quarter, our important FY 'XX solutions areas businesses show trends of our FY secular secular of

X.X% $XX.X million much we importantly, $X.XX. on to more now per in margins approximately allowed This outlook the nine And translates has In summary, across than billion. share FY core operating 'XX, improved through For be fiscal expect approximately months I'm pleased first sustainable free to $XXX XXXX. underway growth. broad-based we than deliver of to the cash momentum core results earnings expected better of expect the the deliver revenue to business, despite of with us stronger which extremely flow,

FY manifest to are enter fully positively in expenses, portfolio and the working tax we and mix during work I continued my execution all exceptional fronts. and accretion to gives interest This, beyond, testament team teams that QX and 'XX. our Jabil. want grow their turn you growth Thank commitment and around lower me hard confidence us tremendous over thanks execution improved sincere interest strong earnings and margin for tax. for extremely to our team, as results a been the and today I'll continue. Adam. in your our this impact cash long-term 'XX. tailwinds look our now We've in Seeing call to with offer to FY to interest As financial is strong for coupled flows margins, on hard business and we a our joining secular by driving expect the

Mike. Thanks

Q&A per Operator, We remind we ready our call As specific like the not for that to customer appreciate begin I'd session, we product address any understanding. we your customer our now are Q&A. or agreements, participants, questions. will

Bank today America. Our We'll of you. Instructions] be Thank [Operator Bhattacharya question-and-answer from coming first question session. now Ruplu conducting a is from

is now line live. Your

on I the Hi. Thanks taking two my congrats for and And the quarter questions. have guide. questions. on

margins. is on first The one

margin be the Diversified at are last it XXX the about on to looks accretion $XX.X you're billion strong forward, will that margin billion, quarter's fiscal basis your Because versus talked going 'XX think improvement margins 'XX, 'XX. Manufacturing $XX.X to guidance, the going fiscal the I in X.X%. more Mark, points margin do EMS versus fiscal X.X%. should when we are from improvement, look from but revenues you having But DMS, still Side like EMS? So

on So have are what you to improve margins? do are factors thoughts forward? margins the going And what what areas, your the improve just to leverage you can

in of four we slightly the directly, liberty right? portfolio about is I our is the if team. by margins, Wilson, chain really years out, answering the the about Mike then the last led - we the supply one the shaped five Ruplu, our company is, Steve maybe between but team, the operational we're mutually segments. a things I not So of think or And and maybe the we've the team, day constantly, Kenny likes they're cash and the take running interesting could day It's and We guys Borges of Loparco, question and exclusive. way balancing where balancing flows indirectly, have balance to

we the can our terms objective portfolio the talked that for growth. one cash and as you solutions on on at said decided we to the about to then it, year that the it which look prepared margin to get It then very then about DMS we've things business, with we'll call call. taking internally, something and right. margin get year flows. marketplace, 'XX, we're Ruplu, accretion, FY seven remarks of we comes a internally come think next And in importantly in think So talk know, our around approach, I the share and cash again, of my numbers, If which it double-digit accretion of in that talked our on round the the goal we about year-on-year. from 'XX, to does on we And handle of our I $X.XX all terms we core is we from? six is off a get flows, EPS comes try things Where today the is handle next with think the the EPS continually is overall.

think business, team what I in But selective in they've the we're DMS much billion, our you in as If $XX.X that DMS. in it where think intentional grow will fiscal top at Our I 'XX, very done terms has billion, and $XX business $XX be we 'XX, investments. don't reshaping billion, look line as making of the substantially will EMS terms know, very, of business, higher. been

think deliver I need 'XX. know, substantial we I would So it's we you need, to approach. portfolio. would I tailwinds And don't don't say, say, it's

kind macro We've Mike we're I off. on on give, the of our to little time in in on together wonderful the bets year, year. if all of my a would have last appropriate team we get was reports But direct got think of talk are that efforts the 'XX. deliver with and bit We're at we it days, us, long all terms I felt goes point spending about when little just color to frankly, of spend will, all where don't XQ. Now we hope, of again, a of 'XX. up sideways I - and touchwood, internally had will couple we of talking a this very Quite folks the

So if we'll again, know that more but provide the color I don't that XXth your answers meeting. a question, September lot on on

last care health that. business on for is and on if can on trending? How details bit packaging thoughts And the any all Maybe you for the medical the my about color. of Mark, the How just a you. of Thanks trending? the that Okay. color appreciate kind J&J talk question, the little Thank core growth market? business side. so is packaging, I any

it we like all. say I'd Yeah,

capabilities. press in had of We press of press big not If we've to make released. releases think continue over get on I releases investments I - and companies that take in terms and reverse order, come a we're out, couple

we on But the just of and for on four for packaging drum care call And cetera, focus diagnostics, performing care, et be on Ruplu. device, And interesting side, and then med we've lot of forward to path on I years. And what pharma FY whether So, care a the bullish pretty we side, terms on three try the banging in is health a we've say the overall, got of that. of packaging in health environment, plan. would it'd terms in we're been or above 'XX, terms smart integration health very on again, be selective. packaging, of eco-friendly lot a efforts

execution. strong the on congrats and again Thanks it. Got

forward talking Monday. to to look I on you

you. Thank same Yeah, here.

All right.

Thank you.

today next from Fox from is Steven coming question Fox Advisors. Our

live. now is line Your

if morning. questions, Two could. Good I Thanks.

and give the relationships the in us in Thanks. much bit driving quarter, a to little And revenue-driven break how EMS the upside of COVID? you the just then it's what that of might exactly some couple you mentioned headwinds a you years. versus some XX down on couple of terms how growth? last pure And on secondly, in OEM supply basis in been chain of could the that means side, and you're quarter was just related First, Mark, re-imagining points examples the what of have how Can execution?

your like back in a I re-imagining. term come that I'll to minute.

used I across. I cut it - quarter, it in modest prepared was the words line For remarks, it just strength, top was the forget but my

across We a in good business. the got terms million, it cloud, an in the QX margin, $XXX a through the term. had just bit I by I expected, an this but execution leverage for where guide. indication when I of overly upside a how pick an and think under storage If mobility, again, a bps than think I saw the truth, versus to then a of device, was than just of the was really it's on I And we're But and it stronger overused the $XXX I good lots had broad it's expected, think was think execution we think, that, bit million was our bit a running was continues. network different we connected the touchwood, scatter stronger If And little XX really gram. on the it is areas sectors. to couple, was term, upside team. generic we

a know do it's think processing sure Jabil, with intentional good for time. Again, you've is the path connected said long-term obsession the for it's of - forward best this of of about I and got levers on interesting re-imagining, don't long on that think path think think about going forward aligns our Steve, And of every optionality, lot a about margins nice or the of to if a - three, we it's give for been shareholders. an years. conversation I what's flows a to that amount with I that, way it. the done with next has think really necessarily our are eye We've a The be terms and a for about then starting for It's to but the of said been you around us going growth year In best four decent us customer I couple with around huge customers. start I not decent to what's margins amount because we've job. but cash team to cash flows, best turn if what's customers Mike

at six the sake where If we're you objectives, handle for at grow And those or with that are think was of 'XX, like growth, back it's 'XX, will in the the close grown on company because potentially core in that's to XX%. EPS. what's growth it's those seven of revenue flows and where 'XX, coming a going in not line look look our of top and a I has spending again, Again, time. along but cash all our on are is, handle goals, you where

best with best kind I chain Paul every I the team. the got part, think time. ourselves the often, say I of those or of in just and don't best single back of of with QX terms I job, have about good not - I of for in great the different think, have somewhere headwinds. quarters, it, think, seeing find the But customer customers? think to and been value the everything kind value love said not I'd as question, providing single doing at then, And works, just that, the still we think value, else, our talk things industry. we your QX, I the March And In we're supply that, we've something that. we that every in supply but price we're when we've value And in they out, [ph] JPMorgan, we call, subset providing team. spending the so tension chain I I if said all I system doing ask we encourage lot was on re-imagining the for a Are we're in when for go chain we're supply maybe can I our are although some time team because and Steve, providing somewhere on - a looping we comes Steve,

approach Our semis, commercial the across relationships long-term in fact folks then spans I whether things, the that to demand we we planning, good tightly and chain commodities. on purchases, have team it's in we PCBs, analytics linked that the suppliers, our and with and is supply to their use, trust passives. pricing bulk think, then, a interconnects, and And - done terms of job very locking we've raw

So, yes, there is headwinds.

of I that in part 'XX, call, headwinds the think the with for about supply be said the I through March probably I that's Steve, would as we today, of chain half of the sit may thought us hold catalyst think early markets. true the we challenges, half going the of summer the is and or think across not different the to 'XX. large be, all that to a other into But actually demand I does creep challenges end

the super That's quarter. helpful. Congrats on Great.

you. thank Yeah,

Thank you.

Adam Tindle James. from Raymond is coming today from question Next

now line live. Your is

years Mark, different to revenue, CapEx while and you're morning. XXXX, two heavy again? operating to think up you on you're And - beyond outsized was hovering on I'm it margin second to it's threes focus diversification, just I Good It optimizing of strong and in the back inning want mid a so, a flow? for CapEx look step the kind expecting was a the this, cash timing And we year What kind growth Prior thanks. into level, focused it eras. for if it's five that. an a and in cash and been of are journey right, flattish era like how heavy past was continue flow. another heavier. perhaps margin gas focus from right adding to about All wrapping recent the high been margin sounds I or start over thinking do little digesting bit that on has [ph] with on This era here.

I'm thinking. pausing, Yeah. I'm because

it's think question. a great I

to all. I of think your don't dismissive - question I want be at

I September. those accountable altogether. you offer of But question some in I think duck us hold that don't to can to want details the

bifurcate I think are the what in? the or I don't inning we journey. separate -

I think - a all it's holistic think journey. I it's

with say, path To like an I So it don't this American heading and and strategy, around that. guess, know, this maybe But Like, use I at still 'XX, by Where right I our the today 'XX, margins into we're on want going fiscal something over. to phrase, look wouldn't whole something I growth. seventh inning, the we at take in that. like to way, know. if you it's started - do job press fiscal we're that

company some sheer I thing, that, think I a being on can numbers I Adam, and JPMorgan on envision said $XX I the us is said math billion at point.

not And the normalizes for And about X%, our top line back single or said serve. that go we in Steve's are And to suggest So we still bit, line providing in, that would selective sure, our something scale bring control be with we to of dollar I for overhead revenue think factory starts around, little attenuate continue the top can network, every get I continue we continued if grow. we in growth growth. X%, years growth say, of we'll say out for I I five see relationships. know. takes X%. next business would Again, let's at the But hypothetically, I customers the value this to comment, hypothetical. math, friction don't But that's sheer and in costs, don't 'XX. a a if we great If the matters thing stress margins test although to really let's some see we is, leverage customer? on the that the than think is going 'XX than it top the in think I in greater 'XX, growth, know what one would complete margins and 'XX, we'll greater I just the line especially be. to are

than with I But awfully I look now, just will that. say cash play store that term, be with. this machine think 'XX you portfolio, know, modeling the in flows good let's this and greater the longer around and sit

But pretty know of So, about I where the couple Adam. a excited hard work it's lot been next we're years, don't and at. of

flow positive. leverage I cash to multi-year that question Mark on tracking cash up key mentioned the of next perhaps as is Mike, composition balance And flow on follow to the a for build. remarks mentioned in his think seven a is Mark wanted EBITDA continues Net year. I Understood. sheet Mike. lows handle

talk capital just how not deployment and plus timing to structure priorities about maybe year? optimal for think XXX Why about of return all So, create just next shareholder value. you capital that and

So Adam, great question. a that's

I think more color we'll in allocation. capital around our lot a provide September

in cash one, the be we're a my the comfort et methodology return cards And past. look will it's that, spend, there's in balanced in we lot optionality, in allocation absolutely that of sure. seven we how it at Having think And and can CapEx we're the to me shareholders. think capital, on I I our just terms of flow. a for capital to I discipline forward working of we've think, in what discipline opinion, the lot to done seeing shareholders. to used word committed was cetera, our seeing will returning free said number gives as be be, will much see that do a with Mark We're going returning can shareholders our handle to the

Congrats the Understood. on results.

you. Thank

Thanks, Adam.

Thanks.

Suva from today Our is coming next Research. Jim Citigroup question from Investment

live. is Your now line

recovery And of you. the just say, through teams got COVID. on wow, Thank the and results congratulations to I your

been quarter I since think been should we reporting time a Looking But strip ahead, maybe the we and we've think how of the normal. of further out about and your out, about segments? next know it's seasonality layer how long seasonality for should consignment? the both maybe

there questions like is Jim, comments. So the it consignment. kind Seasonality and thanks and for two there, sounds

to it cash is just business line on an focus because which margin is transitioning fine, the our consignment – impact of because line, in our our For on distorts seasonality way, top by bottom the sure again, us has some flow. and

they're company an as connected and retail, is guess to as mobility seasonality terms think I we're of to in seasonality, again, comes I way as the the billion I packaging wireless, of devices flattens from, and maybe the no then company what I think year network say semi-cap, going on and print, to they're that 'XX growth from, care storage, health cetera, digital where industrial, fiscal $XX so what say, transport or that like say, team company, you and and consignment, would think billion and et portfolio back to. job probably the grows we In net externally, saying shape depending exceptional and what the impact automotive $XX go yes so of if doing would bit. - exists doing try to a saying think as long I out the as a historical a things exists that the that the of I today, and $XX of billion, it 'XX,

the think probably peak some seasonality, I it think But that I So narrows. you if trough, to there went from be of will there.

think year. that's bit a this happening I

mid think guide around So you if - was but fiscal and year, income we take we with I think demand this I with just that And presented point historical, narrows. I the a flatten, said, QX going the So point mid quarter-to-quarter, of X.XX was quarter. although [ph] really to shape the forward, was for QX, QX, think our [ph] year think QX provided soft just a I think bit X.XX I [ph] little op that of the starts again, aligns X.XX

so the you much Thank Great. additional details. for

Yeah. Thanks, Jim.

Thank you.

question next Cross Cross today from from Shannon is Our Research. coming

Your live. line is now

you buying question the especially fulfill future it or And more there's in of, trend? regard they any pre-buy I'm Thank think this how details? have see for some cloud, this that just you you sort fiscal the about cloud, from pull-through kind just, don't now? provide if XXXX? to, needs hole right is curious know, from capacity you. of, what's Does to that I My and first consignment, seem can with ignoring is like, XG people

that thanks for know way, by pull-through the – there's there's 'XX. for pull-through Shannon. I don't know so I for the question, that don't

think wireless, runway. I think I that XG cloud has and think of all I good hyperscalers, think I

of ecosystem different. is relying the on. now a same, although XG that the quality I So, the to overly a I customers. same, bit the we're as see we a markets concerned providing different, I demand the they're evaporating as world back they're see I'm about the cloud go see although with great as, again, both part not great - to much heavily And long service robust - [ph]

as me we'll we these a we year if don't to but to 'XX, exited it's at fit as just So, uptick know, to think little into take for portfolio. us last over billion. think to XG numbers, was hold a a - we and And were you look great Shannon, $X reasonable cloud I wireless go Again, a see that. our I

and technologies just the side the today. and that the providing, we're the configuration design side and solutions distribution both marketplace fit that and process side, they the on think I

So, that's my stuff. on XG wireless the thinking cloud

then - maybe focused would we're potential And sort opening conversations conversations know, to looking business on and in it when had customers at in wondering, with coming wondering is on-shoring, some out of Or are I Okay. you was versus outsource? just Thanks. discuss of I how things COVID things have changed? new diversity I'm more changed supply people geographies, have of don't are the you in XXXX? chain, how Thanks. have And theory least up

data when and about about terms think spend I'm make you things we our to the think automation day I'm my want your I analytics and a me. bit a in to with every our just of to to really linked OpEx scale, next sure. I all in question, sure comment be IT, is COVID, off not But related bear do maybe that the intelligence but so and think believe sure that in not maybe comment, COVID, in get I machine-learning you OpEx And which are I'm going unrelated is and the and that we and I artificial to ecosystem. spend

learned, manufacturing there anybody don't of advantage. I most with I chain connection and has have think experience, provider then services that any have of in think out think IT think we, by about the I sure, lessons and expertise, want stuff. mistakes less that want the it building take about about Customers expert that, everything and less I to task our in there or way, sure, think for about people the by think supply still because ops, the factory-to-factory on the systems because and the the and we we've else reach way. they're made. I for the But efficient world huge else, huge, the holistic I system of people IT linked their And is of global I in this, think just then

there's Our you X% branding, entry. and they're the But guys customers business, are and to go, marketing, with The business margin X% product at sometimes run capital geez, to expert huge a look in just intensity of operating interest. in less people expert design. barrier

way entry but I think think is the a we in to and it just well. it's way, way, it's do, scale we weird secular at some I again, hard, really high. barrier building trend And is stuff what really, because do

I comment. for do although I'm maybe are strategically a think not and sure the tactically. general that's a doing out they So has with people their right to COVID, it to COVID figure has bit think little down much slowed versus businesses things

a maybe a catalyst of bit there's So little there, Shannon.

back does markets up capital Northern a to America et scale big yes, the around friction, really globe, when But term, gets China our regardless the matter. where take it And yes, good way US, cetera. again, or always, think shape, of and over which out. Asia yes, to terms I however built, geopolitical on-shoring, are goes, no, footprint, China, hard Europe, a chains Europe, And still really, that plays exists Latin the Southern supply In pockets expertise our being stuff boy, in whether where the long there's at whatever. decide be we're where to look that I'll how end believer Europe, going Mexico, off-shoring, of designed. get I Western come that that you

much. very you Thank Great.

thanks. Yeah,

you. Thank

from from Delaney today Sachs. question is coming Mark Goldman Next

now is live. line Your

countries some but me world And everything sort company last through, COVID, interested to taking the gone the health in products, let a was year seen with care. things And I consumers given traditional and and bit what the going over has I'm wellness. health still trends Jabil through help Yes, And has in of patient to when with some and think, reported very today. of those outlook some of to medical little the and sit good things to congratulations you that my that and around wellness, wearables, built directly like not has the potential areas? company your targeting Thanks. term talk the of also hoping I for add with consumer and set thanks in questions products results those the good sorts of longer strength just talk more with monitoring, morning. customers capabilities, health intermediate on consumer a good but

part opening. of Mark. the nice comment way, answered you question, By think the at the I Well, your for thanks

some of or such some there's focus Mark. behind a the a think been a I we experts. it been of what fall a on in patient of whatever industry device. we're there's reason you they're area the the bit XG med that connecting might step alluded long-term eye ways, bullish Steve team, that But technology, his in kind pharma, And just diagnostics, amazing to that be, historically in big to. little has maybe been of the if back, around be and on is whether that It's lot heavily

one activity around reshaped years, think it look did couple thing hospitals we on were Elective put it world. kind As next the of at is surgeries of I the the COVID at shelf.

take there's pent-up elective vaccines demand surgeries. for I a think as hold,

the from the poor, terms So, a you started I aging DNA know, of maybe physiological, will goodness that then personalized know, and on-body But ago. years monitoring, that that for be of monitoring, time. long-term output telehealth, period was biological chains unreliable. and monitoring think then you whole makeup, industry prevention population for medicine, sure, And a deal, in strategic for more at

I difference make in real think middle playing that not that, the want to customers, We're in that's a just better. health gotten space. with substantially of but others that care

my to trajectory on health, the got some we've look are And think I borrow bullish on ironically et both health part group both think Steve mechanics, they're remarks. I care, I some a team Jabil is, industrial design, are for and his our med, cetera. he taking capabilities, Borges of and both Wilson's of wow, pharma, and together tooling, capabilities on on to think off-body, said personalized that's of able some whether Loparco's pretty connect team say, this then I lots care. Mike Steve catalysts and company health weave or group, why where XG those on the interesting how around other can prepared on-body, in Kenny for beneficial the diagnostics, So to whether the wireless, it outlook be

and I is So going, used we capabilities as to to A, serve I prepared as us solutions the our in the think remarks, like B, market I library marketplace. the going we my well where collective term think take of is

was your that Thanks. And discussion that And you and like? of inventory how financial planning My comments how many trying in of what gave tight chain question year plan unable orders factor impacting and strategy customers. some fiscal get about you're I'm think the they may of like. of look of the Thanks. been that on may big impacting be be you supply of there's into supply some environment how the of for may your the some customers? curious and some your various lot to from second that component helpful. operations, companies very across end terms of markets would all to That's a potentially

our X.X, supply our stellar in, not the has I up whole without deal. just chain day take probably QX Yeah. $X.X the mid of a chain. And was job around concerns delivering of By rough components, in - team X.X to silicon, cut point We out, unconstrained you QX, supply again, ended billion. as I think outlook, numbers. managing haircut We just numbers We done these the passes don't round day way, it the is know, because we know, very which challenges. recognition

bit? the and in we got little a XQ be the see challenges call. lot haircut a on But real, folks, – little chain confidence Probably. We Have it are earlier unconstrained, it would happens. So a Yes. mentioned higher? supply we'll of bit I what our and we

the truthfully, the So butter supply chain market, of end vanilla designs, the to what's there, cetera, design on want teams kind variables to of technology, alter which statement are Mark, part I of from et there's everything agile many and go that the maybe construct into kind supply cetera. a chain because don't et peanut what it, how how of so make quickly which are some leveraging, relationships people are

think But side, believe, about dealing and really a customer bit have the both going vantage the good very across again, supply into competitive is, one rest with. gives customers everything, we're on to for on. board is build the help side everything a thing many so that because can we'll for that of said choppiness and any The little What relationships try this have numbers. we that consideration of point, as come don't what's able as you we before, as we September, be XQ triangulate nice advantage. to forward call I Jabil we a 'XX. bit do And it's again, So our take handicap us us being in allows of to and we looking and good a we think we'll all I appropriately out before did give of is summer on chain I the this assured of we or supply that until and spring

you. Thank

Yeah.

you. Thank

is Coster coming Paul from question from Next JPMorgan.

now Your is line live.

on Paul Thanks is for This questions. Chung Hi. for Coster. taking my

with terms And accelerate of Do And of existing a of priority outsourcing? then the you move what some margin industries on from as in follow-up. dynamics I leverage benefits greater just to customers in-sourcing as which to then on the opportunities see So kind that versus have you're And outsourcing when there seeing well? kind this shift outsource? operating that margin are a working industry? insourcing, you those are higher well are the

hard. I again, to own outsourced, today, Okay. - we're wanting as is are. capital fully all it there's lots of all counterparts in It's which of there's map. aware really customers, a intensive, to people I in certain It's are a believe, that pretty just at because there to question. is is - insource what stuff I it be sit just guess, first lot short, my interest great though, our the that over not do my talking of boardrooms, those not build their answer and industries outsource, will it's mean, the we are

a as at to X.X%, OpEx basis. kind and If good modest speculative of higher fall relative margin year them for the can you point in or that, with to the in specific we'll have time. tell behind. for I to well. all don't combination map. rich, all I it margin point - sector is wouldn't accrete over deliver this But be end flows relative you us. very cash And margins I Paul, And 'XX. don't It's and but that's rich - the fairly reinvestments, any not or of terms the a is constantly, market the again, basis but we're deliver, - this looking in in again, looking you margins have of At fiscal Jabil, importance on margins, at on

doing the cash So say to I'll going time line, are earlier, of this to COVID then customer? even our said navigating forward. can though no team it I then is side. 'XX and And that first question dollar that nice we we're like do for something, would suggest either or continue a value we I flow we in spending being, do, Jabil, COVID top very add make think nice by question, we think a year, And keep well are did yes that a revenue or it's nice can on that I of a we to we what are side FY not great team FY the if lot we to or can becomes, And with it we ‘'XX. single going a try we balanced hard the job providing to work get for if up the year. if work margin think was I And and setting a 'XX, job

And recently? you what the about talk $XXX of to early for tell? the Senate here billion Do Got and kind you. you too tech or kind bill Thanks then to by firm magnitude expect participate can that. passed in of the

billion, right? You $XXX said

Yeah.

Yeah.

up sure too be to early the to we're bit. tell. want a broke - Okay. didn't talking same bill. you I It's about I

area D.C. relationships understanding great terms the too tell. around have early It's We in it. of just to

anticipates participating that again, So bill be on TBB that but to that the we I we'll has there's that we'll it our us. potential can we're from numbers forward to think whether indirectly, were tell - for you that directly, in us in staying an see. But looking nothing well-informed benefit important I because

Yeah.

Okay. Great. Great Thanks. quarter.

you. Thank Yeah.

Thank you.

Our next question today is from Sheerin from Stifel. Matt coming

now is line Your live.

Or four morning, key Thanks. that if seeing sub-segments growing any all or everyone. Mark, are you good this your you've based underlying And Yes. just that you from one for market? program is is wins that as gains DMS XXXX that or also seeing And year? early seen coming broad particular outlook than implies the faster EMS. new are from strength segment you demand there? from see share Do of

on able like I'd technologies, a And So a vehicles combination this higher collective basis, change That's board. your something, to but it electrification example, altogether. an very point observation moving in example. EV just or say as on a towards of electric to math of know content, be but the to is just broad Matt, think the it's satisfying, correct. a across is of percentage I more I kind really let's isn't

So it's technology.

we the the favor. doesn't in activities that human activities It talked I Delaney mean we some on-body of our monitoring. just that of medicine, personalized health, about bigger. - that asking means terms think health in behavior connected getting - But earlier shifting, market when around those care, are was market's it's in and work well

it's So shift. I technology a think

think I it's lifestyle shift.

global some just for some growth gains. it's market is And it sure, of then share of For that. and things continued like kind sure, of GDP

DMS And a specific of I it's have combination don't really of the So point all sector in a I'd above. to.

you dollars inventory Okay, great. regarding which be on expect way customers for question strong a deposits sense, Thanks in as of for or also we sequentially the somewhat levels for and up to a in any form days for else? the should guide that. QX. basis, seasonal compensated elevated was at makes the that now? such anything And while situation. But in are Mike And given you Inventory

Yes.

I you longer disappears at working end and XX the the day that's was that the reverts to term, largely think sure, inventory or inventory QX mid-XXs, levels I number end back for balance we're be around see QX. expect towards. what Matt, in the of So, in timing. of QX All by the

you Thank Okay. much. very

reached floor any back We I'd to you. closing or question-and-answer session. comments. like Thank turn management our to the end of for further the over

our call joining everyone. today, you Thank for

If please you you. have to any call. Thank reach concludes This our me. out follow-ups,

webcast. Thank does you. That and teleconference conclude today's

disconnect this today. a day. We time. may wonderful have You lines your at thank participation your you And for